Compliance Watch:

What are my rights as a salaried employee in Colorado?

In Colorado, a salaried worker is an employee who regularly receives a predetermined, unchanging amount of compensation from their employer. Employers in Colorado must provide payment to their salaried employees on a weekly, biweekly, or monthly basis, regardless of the number of hours worked in a given week.

Salaried employment in Colorado can be divided based on eligibility for overtime. The initial category includes salaried employees with exempt status, such as professionals, executives, and administrative personnel. These individuals do not qualify for overtime pay and receive the same compensation, regardless of the hours worked each week, even if it exceeds the standard 40-hour workweek. Conversely, non-exempt employees in Colorado are entitled to receive overtime pay for any hours worked beyond 40 in a single work week.

• Meal breaks and rest: Salaried employees in Colorado have the right to designated break times during their workday, ensuring they have an opportunity to rest and recharge under state labor laws.
• Minimum wage: Salaried employees categorized as non-exempt in Colorado have the entitlement to receive the state’s minimum wage i.e.$14.42.
• Protection with federal regulations: Colorado’s salaried workforces are protected with federal regulations, including the Fair Labor Standards Act (FLSA), the Family and Medical Leave Act (FMLA), and the Occupational Safety and Health Act (OSHA).
• Overtime compensation: Non-exempt salaried employees have the opportunity to receive overtime compensation at a rate of 1.5 times their standard hourly wage for any hours worked beyond 40 hours in a single workweek.
• Right to unpaid leave: Eligible Colorado employees have the option to take unpaid leave for specific medical and family-related reasons under the Family and Medical Leave Act (FMLA).
• Protection against workplace discrimination: Workers in Colorado are shielded from workplace discrimination based on various factors, including disability, national origin, ancestry, race, color, religion, gender, and military veteran status.
• Workplace safety: Salaried employees are entitled to a safe workplace that complies with safety standards as outlined in the Occupational Safety and Health Act (OSHA), ensuring their well-being and access to necessary safety training.
• Protection for employees with disabilities: Employers in Colorado are obligated to provide reasonable accommodations to salaried employees with disabilities, allowing them to perform their job responsibilities effectively and without prejudice, under both state and federal disability laws.

Yes. Certain salaried employees can still be eligible for overtime pay. In Colorado, when a non-exempt employee exceeds 40 hours in a workweek or 12 hours in a workday, they are entitled to receive compensation at a rate 1.5 times higher than their standard pay rate. The work week is defined as a consistent, repeating period of 168 hours, commencing at the same precise time each week, and should be established by the employer.

To determine the standard pay rate, employers must take into account various forms of compensation such as minimum wage tip credits, production bonuses, hourly wages, non-discretionary bonuses, commissions, and shift differentials. For a comprehensive understanding of this topic, you can access our guide on Colorado overtime laws.

Wage deduction laws at the state level vary, but in Colorado, following wage deduction requirements necessitates obtaining written consent from the employee beforehand. Without this consent, deductions that are not mandated by law are considered illegal.

In Colorado, when employees work continuously for over 5 hours, they have the right to a minimum 30-minute meal break. During this interval, employees should not be expected to engage in any work-related tasks, and they will not receive compensation for this break period. Nevertheless, if circumstances demand that the employee must eat while on the job, this time should be fully remunerated.

Yes, they can. The State of Colorado is dedicated to embracing the challenge of enhancing flexible work initiatives that cater to the work-life and family needs of our employees, all while ensuring that workplaces maintain high levels of productivity and efficiency. These flexible work arrangements are designed to accommodate the diverse workforce by offering options for how, when, and where work is performed.

In Colorado, an exempt employee is someone who is not eligible for overtime compensation when they work more than 40 hours in a week. This category applies to individuals who earn a minimum of $1,057.69 per week, which equates to an annual income of $55,000, and hold specific job roles, such as executive, administrative, professional, computer-related, or outside sales positions, as defined by the Fair Labor Standards Act (FLSA).

Exempt employees are not entitled to receive overtime pay, even if they work more than 40 hours in a week. Employers need to have a comprehensive understanding of both the FLSA and Colorado labor laws to ensure compliance. Incorrectly classifying employees can result in costly wage disputes and legal consequences.

The implications and advantages of being classified as an exempt employee in Colorado include the following:

• Salary Cap: While there is a guaranteed minimum salary, the potential for substantial income growth over time may be limited, in contrast to positions with variable compensation structures like hourly wages or commissions.
• Elevated Stress and Responsibility: With autonomy and authority come increased responsibilities, potentially leading to higher stress levels and workplace pressure.
• Benefits and Perquisites: Exempt employees typically have access to a wider range of benefits such as health insurance, retirement plans, and paid time off, enhancing their overall compensation and well-being.
• Job Security and Legal Protections: Exempt status generally provides stronger legal protections, ensuring job security and offering safeguards in cases of workplace disputes, discrimination, or wrongful termination.
• Professional Growth: Employers often invest in the professional development of exempt employees through training and educational opportunities, enabling them to enhance their skills and advance in their careers.
• Minimum Salary Guarantee: Exempt employees in Colorado are typically guaranteed a minimum salary following FLSA standards, providing financial security and ensuring a baseline income level.

To determine whether you fall under the exempt or non-exempt category in Colorado, you can utilize three essential criteria to ascertain your exemption status, as outlined by the Fair Labor Standards Act:

• Salary Level Assessment: If your annual salary surpasses $55,000 (equivalent to $1,057.69 per week), you may be eligible for exempt classification.
• Salary Basis Evaluation: If you receive a guaranteed minimum compensation regardless of the actual hours worked, you could potentially meet the requirements for exempt status.
• Duties Analysis: In addition to satisfying the prerequisites of the first two tests, you must also perform job responsibilities falling within exempt categories. These duties encompass executive responsibilities, professional duties, and administrative duties.

Commencing from January 1, 2024, the minimum wage in Colorado for nonexempt workers stands at $14.42 per hour. It’s important to note that this minimum wage experiences annual adjustments, factoring in the Consumer Price Index to cater to the needs of Colorado residents.

For employees who receive tips, this reduced rate is established at $11.40 per hour. Employers maintain the authority to implement tip-sharing arrangements among their staff as well.

The term “workweek” is defined as a consistent, repeating period of 168 hours, which starts at the same specific time each week, as determined by the employer. As per the Colorado Overtime and Minimum Pay Standards Order (COMPS), when an employee exceeds 40 hours in a single work week or 12 hours in a single workday, including consecutive hours, they are entitled to receive compensation at a rate of 1.5 times their standard hourly wage.

Permissible deductions from employee wages in Colorado include deduction that are required by law, such as taxes and garnishments, deductions agreed upon in writing, such as loans or equipment costs, deductions to cover theft-related shortages under certain criteria, authorized deductions that can be revoked, such as insurance or savings plans, and deductions for union dues, as well failure to pay or return money or property owed to the employer.

Colorado laws offer various protections and benefits which include the following:

• Colorado regulations prohibit employers from engaging in discrimination and retaliation against employees in various protected categories. Moreover, employers are required to ensure pay equity and protect individuals who report misconduct.
• Colorado laws guarantee equal pay for similar job roles and shield employees from retaliation when they report discrimination or violations of labor laws.
• Workers in Colorado have the right to various types of leave, including domestic violence leave, jury duty leave, witness leave, and military leave.
• Both federal and Colorado state laws stipulate that employers must provide new mothers who are breastfeeding with a reasonable amount of break time to do so.
• The Fair Labor Standards Act mandates that employers pay at least the minimum wage for all hours worked and provide overtime compensation at one and a half times the regular rate for additional hours.

Cases involving violations of labor or employment regulations often include a range of issues, such as wage and working hour discrepancies, unsafe working conditions, and unfair treatment. In Colorado, it is generally necessary to report labor or employment law violations to the local office of a federal agency.

If you suspect a breach of wage laws, you have the option to submit a complaint to the Division of Workers’ Compensation. Employees can utilize an online complaint form provided by OSHA to report any unsafe or unhealthy working conditions within their workplace.